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The estimates shown are for a bridge under consideration for a river crossing. Use the conventional B/C ratio method at an interest rate of 6% per year to determine which bridge, if either, should be built. East Location West Location Initial cost, $ 10x106 30x106 Annual M&O, $/year 100,000 90,000 Benefits, $/year 990,000 2,200,000 Disbenefits, $/year, $ 120,000 100,000 Life, years ∞ ∞
Briefly discuss the two problems that arise when considering the resource use in travel and tourism. Why are the rewards for resource use in tourism often low? List and discuss various reasons.
Total time available is 168 hours per week. Suppose Toni's wage rate is $10 per hour, the price of the consumption good is $1 per unit, and non labor income is $320 per week. If Toni chooses to take 118 hours of leisure per week, how much of the cons..
Water rights, markets and rates are often tied to their intended use (e.g. commercial, agricultural, and residential) and out of use or out of basin water transfers are often prohibited. Why?
q1. since the gdp is a total market value of final goods and services produced within a country over time. why is this
How much (per unit) is the tax? Briefly discuss how incidence of the tax is divided between buyers and sellers in this case. Find comsumer surplus and producer surplus both before and after the tax. How much tax revenue has been generated? What impac..
Our recent recession seems to demonstrate again that expenditures and incomes depend on each other. If markets do not self adjust, how can a decline in spending lead to a negative process that ruins an economy? (Consider referencing the "Keynesian Cr..
Good X and good Y are complements. U(X, Y) = min (5X, 4Y). Price of X is $5 and price of Y is $4. The total income is $80. Write the consumption ratio of good X and good Y. Write the budget constraint.
The unemployment rate will fall if potential output growth is:
You are a management consultant of a major MNC that is replacing the leadership team in its strategic business unit in Australia. This strategic business unit has a staff of 30,000 and is manufacturing small electronic equipment for export. What type..
Draw simple labor supply and demand graphs for the occupations of school teachers and plumbers to show the labor market in each profession. Show the reduction in output from discrimination. Show the economic gains from eliminating discrimination. Wit..
In the short run, at a market price of $15 per shirt, this firm will choose to produce shirts per day. On the previous graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $1..
Consider a homogeneous duopoly market where two Örms compete in prices (Bertrand). Demand is given by D(p) = 16 2p. There are no production costs.
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